King Corporation, an Electing S Corporation, Is 100% Owned by Crystal

question 98

Essay

King Corporation, an electing S corporation, is 100% owned by Crystal. On January 1 of the current year, her adjusted basis in the King stock is $30,000. During the year, King reports an ordinary loss of $30,000, tax-exempt municipal bond income of $15,000, dividend income from domestic corporations of $5,000, a long-term capital loss of $20,000, and a short-term capital loss of $30,000. What is Crystal's basis for the King stock at the end of the year?

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Definitions:

Genetic Factors

Influences on an individual's traits and behaviors that result from the composition of their genes or inherited characteristics.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, or preferences through experience, study, or teaching.

Big Five Model

A personality framework that outlines five broad dimensions of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Extraversion

A personality trait characterized by outgoingness, high energy, and a preference for social interaction.